GASB and FASB Accounting Essay Example | Topics and Well Written Essays - 750 words

GASB and FASB Accounting - Essay ExampleWhereas FASB has the objective to establish and improve standards for fiscal accounting and reporting that will help in guiding and educating public including auditors and other users of monetary democracyments.GASB was be in 1984 to succeed National Council on Government Accounting as a standard-setting body for state and local governmental bodies, whereas FASB issues standards and other pronouncements for entities other than governmental bodies. However, when there ar no pronouncements on original issues from GASB, the pronouncements issued by the FASB shall become applicable to governmental bodies as well. So far as business organizations argon concerned, they have to abide by the standards issued by FASB. Non- business organizations, non- government organizations follow FASB and the government organizations come to a lower place the domain of GASB.GASB is very specific to state legislature while issuing pronouncements. FASB, on the ot her hand, issues pronouncements that are universal and cater the business on a federal basis. In fact FASB receives many requests for swear out on various financial accounting and reporting topics from all segments of its diverse constituency, including investors and the SEC. The auditing profession is sensitive to appear trends in practice, and consequently, it is a frequent source of requests. Requests for actions include both new topics and suggested review or second thought of existing pronouncement.(Facts about FASB, page 1)It is believed that governments need not show profits like other financial entities.